The Ministry of Finance confirmed that the Individual Insolvency Law No. 19 of 2019 issued in November 2019 has effectively entered into force since the beginning of January, and it can be resorted to through the procedures stipulated therein, stressing that there is no need to issue an executive regulation of the law, similar to its counterpart of corporate bankruptcy.
In response to an inquiry by Emirates Today, all of the articles and provisions of the law are clear, as well as the procedures to be followed, the conditions and documents required to accept the lawsuit, and other related technical and procedural matters, and for this reason, the text of the law did not include an article indicating the issuance of an executive regulation. Like many other laws, including bankruptcy.
The Finance pointed out that the preparation of the insolvency law took enough time to fulfill all aspects, and it also included a breakdown of all points, indicating that individuals who wish to benefit from the law can go to the courts with jurisdiction, and provide the required documents and papers, and then proceed with the case as stipulated It has court procedures.
The Ministry of Finance stated that the process of preparing the law went through several legislative stages, as the bill was presented to specialized agencies in the state, to discuss its draft, and to make the amendments that are agreed upon before the law is issued.
"It was the beginning of the preparation of the first draft, through consulting specialized and accredited law firms, which in turn prepared a draft based on the mechanisms used in modern legislation, and advanced concepts in the field of insolvency or financial settlement procedures."
She emphasized that the preliminary drafts were studied by specialists, as well as studied in terms of their compatibility with the legislation in force in the country, while ensuring that they keep pace with international legislative development, and ensure that the law abides by the standards required by international application, especially those set by the World Bank. Drafts were also discussed with specialized committees of local and federal government agencies, studying laws based on the advice of local government and private agencies.
It is noteworthy that in November 2019, the Council of Ministers adopted the insolvency law for the natural person, which came to enhance the country's competitiveness in the field of ease of doing business.
Amal Al Minshawi À Abu Dhabi